Go Back  PPRuNe Forums > PPRuNe Social > Jet Blast
Reload this Page >

eBay UK Charging VAT on Second-hand Items

Jet Blast Topics that don't fit the other forums. Rules of Engagement apply.

eBay UK Charging VAT on Second-hand Items

Old 4th Oct 2021, 10:55
  #1 (permalink)  
Thread Starter
 
Join Date: Feb 2006
Location: Station 42
Age: 66
Posts: 943
eBay UK Charging VAT on Second-hand Items

I sold a second-hand item on eBay UK for 110 and find I've been charged VAT on top of their commission. I'm registered as a private seller and live in the UK, as does the buyer. I got onto eBay's customer department chatline and received this response querying the charge:
The reason you are able to see the VAT there in the transaction page is because our platform has business sellers as well and we will not be able to maintain 2 systems for it, thus the charge for private seller is broken down by the system to adjust the VAT.

This is the breakdown:
Final Value Fee Variable percentage Musical Instruments category
-11.73 Rate for 0.00 - 2,500.00 10.6667%
Final Value Fee Per order fixed amount -0.25 -0.25
Total fees -11.98
VAT (20%) -2.40
Total fees (includes VAT) -14.38

Huh? Anyone understand their reasoning?
stevef is offline  
Old 4th Oct 2021, 12:03
  #2 (permalink)  
 
Join Date: Dec 2005
Location: Wherever I lay my hat
Posts: 3,144
Yes. You engaged a VAT-registered company (eBay) to provide a service. They have provided that service and are charging you a commission which is therefore subject to VAT. The object in question shouldn't be - unless the seller is also VAT registered.

Their reasoning is quite correct - you don't need to know what the VAT element is, but a business seller might if they're VAT registered (so they can claim it back)
rudestuff is online now  
Old 5th Oct 2021, 06:21
  #3 (permalink)  
 
Join Date: Dec 2003
Location: FL450
Posts: 1
Slight thread drift..

This is Doris's "Great Oven Ready Deal..."

I purchase on Ebay.uk and also have to pay UK VAT @20% (no I don't but I do) on the item even though it is being exported. I then have to pay the postage charges plus 20% VAT. Upon arrival I have to pay import tax, (???) a postage handling fee and 25% VAT. The end result a 25 pound gear knob lands here at nearly 60 pounds!

Thanks Doris. I can hardly wait for pudding.
Kelly Hopper is offline  
Old 5th Oct 2021, 07:03
  #4 (permalink)  
Thread Starter
 
Join Date: Feb 2006
Location: Station 42
Age: 66
Posts: 943
Originally Posted by rudestuff View Post
Yes. You engaged a VAT-registered company (eBay) to provide a service. They have provided that service and are charging you a commission which is therefore subject to VAT. The object in question shouldn't be - unless the seller is also VAT registered. Their reasoning is quite correct - you don't need to know what the VAT element is, but a business seller might if they're VAT registered (so they can claim it back)
Thanks for your reply, rudestuff. However, after a bit of research, it appears that this has only been happening (in various forms) since the beginning of the year and there are six pages of complaints on the eBay Community Sellers discussion forum titled: VAT added to items I have for sale in UK. According to some comments, sellers were told there was a glitch in the system and the technical department was looking into finding a solution. Others discovered that by slightly editing their address, VAT is no longer being charged as something in the system seems to be indicating a foreign transaction.
Very strange.


Last edited by stevef; 5th Oct 2021 at 07:32.
stevef is offline  
Old 5th Oct 2021, 07:43
  #5 (permalink)  
Paid...Persona Grata
 
Join Date: Aug 2004
Location: Between BHX and EMA
Age: 75
Posts: 237
Car breakers have been doing it for years. You buy a part thay they have stripped off a car, which has already had VAT paid on it when new, and you have to pay it again. Rip-off by HMRC.
UniFoxOs is offline  
Old 5th Oct 2021, 13:19
  #6 (permalink)  
 
Join Date: Dec 2003
Location: FL450
Posts: 1
Yep. I am looking at buying old classic car parts. Rusty 50 year old parts are now subject to VAT? What? How can Doris possibly have signed up for this?
Kelly Hopper is offline  
Old 5th Oct 2021, 13:57
  #7 (permalink)  
 
Join Date: Jan 2008
Location: Reading, UK
Posts: 13,363
Originally Posted by UniFoxOs View Post
Car breakers have been doing it for years. You buy a part thay they have stripped off a car, which has already had VAT paid on it when new, and you have to pay it again. Rip-off by HMRC.
If only there was some tax that could be put on the value-added that the breaker provides by supplying you with a component that you'd have to pay a fortune to buy from elsewhere.

I can't think what they would call such a tax, though.
DaveReidUK is online now  
Old 5th Oct 2021, 15:03
  #8 (permalink)  
 
Join Date: Aug 2008
Location: NW England
Posts: 93
There's an idea. Pay a tax on the value added to the part by removing it from the car rather than on the whole retail price (most of which has already been taxed).
What could we call it? Value added tax just doesn't seem right.
Hadley Rille is offline  
Old 5th Oct 2021, 16:35
  #9 (permalink)  
 
Join Date: Jan 2003
Location: Kelowna Wine Country
Posts: 461
You're lucky. Ours is called GST.

GST is charged on second hand goods if sold by a GST registered business. Buy cabinet hinges from the Re-use it store and pay GST on them. Buy a second hand car, even privately, and they charge GST on it when you go to insure it, no escape. If you buy a third or fourth hand item you would be paying tax on it for the fourth time!
ChrisVJ is offline  
Old 5th Oct 2021, 16:57
  #10 (permalink)  
Paid...Persona Grata
 
Join Date: Aug 2004
Location: Between BHX and EMA
Age: 75
Posts: 237
There's an idea. Pay a tax on the value added to the part by removing it from the car rather than on the whole retail price (most of which has already been taxed).
Well, that would seem to be not unreasonable - it could be charged at, say, half rate, on the basis that half the cost you were paying would be for the (already taxed once) item, and the other half the scrappers time and effort in dismantling it off the donor car, cleaning it and having the value tied up on their shelf until I come along and buy it.
UniFoxOs is offline  
Old 5th Oct 2021, 19:46
  #11 (permalink)  
 
Join Date: Jul 2013
Location: Everett, WA
Age: 66
Posts: 3,413
Originally Posted by UniFoxOs View Post
Car breakers have been doing it for years. You buy a part thay they have stripped off a car, which has already had VAT paid on it when new, and you have to pay it again. Rip-off by HMRC.
That's how government works - they are going to take your tax money any way they possibly can regardless of if it's 'fair'.
In Washington state, when you buy a new car you pay sales tax (currently a bit over 10%). Then when you turn around a sell that car to someone else, they get charged sales tax when they register it (based on whatever they paid you for the car). Never mind that you paid sales tax once already. Win-win for the government, lose-lose for the consumer. They only way around it is to trade in your old car to the dealer - that reduced the purchase price of the new car by the trade-in and hence the tax you pay on the new car. Of course the car dealer will collect sales tax when they resell the car. It does make trading in your old car more attractive since it effectively increases the trade-in value by over 10%.
tdracer is online now  
Old 5th Oct 2021, 22:15
  #12 (permalink)  
 
Join Date: Jan 2008
Location: Reading, UK
Posts: 13,363
Originally Posted by Hadley Rille View Post
There's an idea. Pay a tax on the value added to the part by removing it from the car rather than on the whole retail price (most of which has already been taxed).
The part has practically no value when the breaker buys the car, so the price it's sold for is in effect the value-added.
DaveReidUK is online now  
Old 6th Oct 2021, 09:48
  #13 (permalink)  
 
Join Date: Jan 2012
Location: France
Age: 76
Posts: 121
If I buy a new item on ebay from UK, I'm in France, I have to pay UK VAT on the item at 20%. Then pay 19.5% French VAT here in France. The way I understand it the UK sellercan reclaim the UK VAT if the item is exported so should reduce the price by 20% on the UK price.
Now I won't buy from UK on Ebay if I can avoid it.

Last edited by Sevarg; 6th Oct 2021 at 09:49. Reason: Add 'on Ebay'
Sevarg is offline  
Old 6th Oct 2021, 10:40
  #14 (permalink)  
Gnome de PPRuNe
 
Join Date: Jan 2002
Location: Too close to Croydon for comfort
Age: 57
Posts: 9,086
Haven't used Ebay in about 15 years. Friend of mine was trying to buy a replacement remote for his telly from Ebay last week and moaned in the pub that the sale failed for some reason. Use Amazon said I and found the correct item with two minutes. Got a spare part for my shower from an Amazon market place seller earlier in the year.
treadigraph is online now  
Old 6th Oct 2021, 11:12
  #15 (permalink)  
 
Join Date: Sep 2015
Location: London
Posts: 353
Originally Posted by DaveReidUK View Post
The part has practically no value when the breaker buys the car, so the price it's sold for is in effect the value-added.
^ this. It's like mining; the price of the end product is determined almost entirely by the cost of extraction.

Going back to the original point: Is it actually the case that eBay have just started charging VAT on fees, or is it the case that they've always done so, but have only recently started showing the breakdown on invoices for non-business customers?
pasta is offline  
Old 6th Oct 2021, 12:45
  #16 (permalink)  
 
Join Date: Jul 2003
Location: Brum
Posts: 2
Originally Posted by stevef View Post
Thanks for your reply, rudestuff. However, after a bit of research, it appears that this has only been happening (in various forms) since the beginning of the year and there are six pages of complaints on the eBay Community Sellers discussion forum titled: VAT added to items I have for sale in UK. According to some comments, sellers were told there was a glitch in the system and the technical department was looking into finding a solution. Others discovered that by slightly editing their address, VAT is no longer being charged as something in the system seems to be indicating a foreign transaction.
Very strange.
Except the VAT is being added to eBays fee, not the entire purchase price of the item. eBay is a VAT rated business, why would they be exempt from charging VAT?
Nige321 is offline  
Old 6th Oct 2021, 14:37
  #17 (permalink)  

Flashes from the Archives of Oblivion
 
Join Date: Jan 2000
Location: 03 ACE
Age: 70
Posts: 929
Pity the "poor" boat owner who buys a spanking new yacht in the UK paying full VAT, only to discover that returning to the UK several years later, after the trip of a lifetime, is required to pay VAT once more.
I currently have two friends in that position, both retired and in a real fix as to exactly what to do.
Does not get much crazier than that !

El Grifo
El Grifo is offline  
Old 6th Oct 2021, 16:32
  #18 (permalink)  
Paid...Persona Grata
 
Join Date: Aug 2004
Location: Between BHX and EMA
Age: 75
Posts: 237
^ this. It's like mining; the price of the end product is determined almost entirely by the cost of extraction.
A part with 5000 miles on it and the same part with 150,000 miles on it cost the same to take off the car. You want to try offering the 150,000-mile price for the 5000 mile part?
UniFoxOs is offline  
Old 6th Oct 2021, 18:12
  #19 (permalink)  
 
Join Date: Jan 2008
Location: Reading, UK
Posts: 13,363
Possibly overworking the simile a bit too far.
DaveReidUK is online now  
Old 6th Oct 2021, 18:44
  #20 (permalink)  
 
Join Date: Jan 2006
Location: Dorking
Posts: 489
Originally Posted by pasta View Post
Going back to the original point: Is it actually the case that eBay have just started charging VAT on fees, or is it the case that they've always done so, but have only recently started showing the breakdown on invoices for non-business customers?
Always done so, but it used not to be itemised. Here's one from 2017.

Invoice number
071517-718003390033 INVOICE
15 July 2017 Account summary 16 June - 15 July Pacific Time
New fees Includes promotional savings and United Kingdom VAT at the applicable rate.

Final value fees 21.49

Subtotal 21.49

Total due 21.49






boguing is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.